What Impact Has Information Services and the Internet Had on Consumers

question 5

Multiple Choice

What impact has information services and the Internet had on consumers and businesses?

• A) They have shifted the balance of power between consumers and businesses because consumers are able to compare prices, read independent rankings, and obtain greater product knowledge.
• B) The Internet and other information services have not had a substantial impact on consumers and businesses.
• C) The balance of power between consumers and business has remained the same because businesses have obtained greater access to information about their competitors.
• D) Greater information services and the Internet have shifted power back to businesses since they can now obtain more information about their customers.
• E) Laws and regulations represent the influence businesses have on consumers and vice versa---whether or not information is more readily available does not impact the laws governing consumers' rights.

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Definitions:

Budget Constraint

The limitation on the purchase of goods and services based on the availability of income and wealth, reflecting the trade-off between different combinations of goods.

Bell Peppers

A type of large, sweet red, green, or yellow vegetable, also known as a capsicum, commonly used in cooking for its flavor.

Black Beans

A type of legume that is often used in Latin American and Caribbean cuisine, known for its black color, small size, and rich, slightly sweet flavor.